WHI’s liquid alternatives consist of hedge funds of funds, which invest in third party managers who generally have strong pedigrees, a track record of success, and who share many of the same basic investing sensibilities that have informed our own investing over the last fifty years— a value-based approach, a willingness to conduct deep and dispassionate research on investment opportunities, a long-term investment perspective, and the ability to understand and articulate the primary determinants of each investment’s ultimate success or failure.
Our Illiquid strategies consist of longer-duration, less liquid investment opportunities in direct private equity situations as well as third-party managed private equity vehicles. Our return hurdles in these strategies tend to be higher given the requisite premium expected in exchange for the decreased liquidity. It is our intention to be a provider of capital in times of stress, distress or situational opportunity, creating the prospect for outsized returns.
WHI’s Alternatives Group invests client capital both directly and indirectly with a select number of outside investment funds, in order to access sectors, geographies, and strategies outside of traditional stocks, bonds and cash. These investments include, among others, hedge funds, private equity, venture capital, secondary funds, and hard asset funds. Our team employs a rigorous due diligence process which includes extensive fundamental investment analysis, thorough background and reference checks, multiple personal interactions, on-site manager meetings, and comprehensive reviews of operational practices. When constructing portfolios, we employ a fundamental, “bottom-up” approach that enables us to achieve diversification and select “best-of-breed” managers within each strategy.
The Alternative Group focuses both on Liquid Strategies and Illiquid Strategies, which tend to be longer in duration. Through these approaches, our clients gain exposure to some of the brightest, most talented investment professionals in the industry, many of whom might not otherwise be accessible to individual investors. In addition to enhancing our clients’ diversification and investment returns and dampening the volatility of their portfolios, these relationships have meaningfully enhanced our access to economic data and investment acumen, which further informs the various investment activities throughout the firm.